Influencer Payment Regulations in Argentina Playbook

The average onboarding time in Argentina is a few seconds with Gigapay. With Gigapay, you can easily onboard and pay influencers in Argentina, all while adhering to the relevant local laws and regulations. Simplify your payout processes with Gigapay.

Individual

If the influencer is acting as an individual without any registered activity, it is essential to be aware of applicable rules and regulations, as you may have additional responsibilities towards the individual.

It is important to understand what legal obligations are applicable to you. You may for example have withholding responsibilities or be required to pay social costs.

What is an Individual?

A person providing a service to someone without actually registering an activity. It could for example be someone helping the neighbour with their math exercises before a test for a small fee.

Is it possible to make payouts to the creator?

Yes, but conditions may apply. If certain thresholds are met, the influencer should register for a TIN number and/or register their activity as a sole trader or company.

Sole Trader

Receiving compensation as an individual can be tricky and may sometimes raise concerns related to employment laws and taxation rules.

Therefore, it is quite common for influencers to register their activity as sole traders in their country of work. In fact, most countries have simplified systems allowing persons to register their activity in a quick and easy way. This allows influencers to invoice their clients and pay their taxes in a more streamlined way

What is a Sole Trader?

A sole trader is typically a self-employed person who owns and runs their own business as an individual. Sole traders usually benefit from a simplified system designed to make it easier to start a business.

In Argentina, sole traders may choose between being registered as self-employed “autónomo” or as “monotributista”. Both systems come with their own sets of advantages and disadvantages. In general, Argentinian sole traders benefit from a unique, simplified system designed to make it easier to start a business.

The sole traders are able to issue invoices and sell goods and services. They pay their own social fees and taxes.

You may read more about the registration process and information related to self-employment and sole traders in Argentina on the following websites:

Is it possible to make payouts to the creator?

Yes.

Company

If the influencer is popular, it is not uncommon that they have a registered company and a whole team working with them (billing, project management, technical team, ...).

What is a Company?

A company is typically a legal entity formed by a group of individuals to operate a business enterprise. It may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Is it possible to make payouts to the creator?

Yes.

Due Diligence

To assess your responsibilities towards the influencer, it is necessary to define your relationship and follow a proper due diligence process catered to the status of the influencer and their country of activity. This may include requesting information about their name, TIN number, age, and more.

It may also be relevant to do some research about the influencer's followers in order to verify that their followers fit the kind of content or product you would like to advertise. This is especially important if the followers are young (e.g. it may not be appropriate to advertise alcohol to underage followers).

Payment Method

Argentina is typically considered a high-taxation country. Bank transfers and currency conversations usually come with high fees. The most common payment methods used to pay influencers in Argentina are PayPal, payments through Western Union, and payments through different cryptocurrencies.

Electronic invoicing is the most common form of invoicing in Argentina. Argentinian sole traders and self-employed workers may invoice clients in Argentina and other countries. The influencer will in most cases need to register for VAT (”IVA” in Spanish) and will issue VAT invoices.

As explained above, Argentina is usually considered a high-taxation country. Using invoices may come with additional costs and need to comply with a strict set of rules. This may create some hurdles for influencers wishing to offer marketing services to foreign companies not established in Argentina. Please note that the reverse charge system applies if the sole trader invoices a client in another country. You may read more about reverse charge here.

Gifting, Travel, and Vouchers

As a general rule, gifts are considered to be a form of compensation, and influencers should therefore always report the value of gifts, free travel, and vouchers to their tax authorities. The taxable value is usually based on the commercial value of the gift, travel, or voucher.

It is not uncommon for companies to be legally required to report to tax agencies when they pay out compensation to an influencer. Influencer partnerships are quite different from regular partnerships, compensation may not only include monetary compensation but also free gifts, vouchers, and travel. In some countries, all types of compensation sent for “payment” to the influencer should be reported. Therefore, it may be relevant to verify your reporting responsibilities on that matter.

Tax and Reporting Implications

‍Exchange of income statements to other countries.

As mentioned above, it is not uncommon for companies to be legally required to report to tax agencies when they pay out compensation to an influencer. This obligation may also be applicable if you are working with an influencer from another country. Many countries sign bilateral agreements in which they agree to exchange income statements with each other. This allows tax agencies around the world to have a better overview of the compensation paid out to the people conducting business in their country and better control over who should pay taxes or not. The exchange of income statements is especially relevant when paying out compensation to individuals without a registered activity. It is therefore important to verify your reporting obligations in your country.

Additional responsibilities - social fees, withholding of taxes, more

Before drafting an agreement with an influencer, it is important to consider if the person has a registered activity as an influencer or a company. If the influencer is acting as an individual without any registered activity, it is essential to be aware of applicable rules and regulations, as you may have additional responsibilities towards the individual. It is important to understand what legal obligations are applicable to you. You may for example have withholding responsibilities or be required to pay social costs. It is important to be fully aware of all the responsibilities before drafting any agreement with an influencer as you may be able, depending on the applicable laws and regulations, to put some of the responsibilities onto the influencer if it is clearly stated in the agreement. It is also important to consider any potential liabilities arising from the agreement. As such, the responsibility of each party should be clearly described in the agreement and preferably regulate topics such as the payment of indirect and direct taxes, reporting to tax authorities, or even social costs.

Advertising and Marketing Law

In most countries, influencer marketing is already regulated by national laws such as consumer protection and marketing laws or specific guidelines.

Considering influencers can reach consumers globally, examining legal implications in various countries is important. Violating the rules can lead to penalties, fines, and legal fees.

It's important to note that there are topics that are usually more strongly regulated within influencer marketing. These commonly include:

Children and minors.
Alcohol, religious beliefs, adult content, tobacco, cosmetic procedures, gambling products, and in certain countries politics.

Work on this is progressing quickly both on a national and a global level. It would therefore be wise to keep yourself updated on new laws and guidelines being issued on the topic.

Influencer marketing regulations in Argentina

The Argentinian Advertising Self-Regulation Council (”CONARP”), came out with a code of ethics and a guide for influencers in 2022. The documents detail how influencers should include clear and evident information when paid content is being advertised and could, for example, include hashtags such as #SponsoredContent.

Messages or pictures posted by influencers may only include their real opinions or recommendations. The message should be truthful and avoid deception or exaggeration. In fact, the post should not confuse the reader, abuse their trust, or exploit their lack of culture, knowledge, or experience.

Also, Argentinian Senator, Cristina del Carmen Lopez Valverde, prepared a draft bill – Draft Bill No. 1358/20 "Legal Regime for Influencers”, which was submitted for preliminary approval of the Senate on June 30, 2020. Section 4 of the proposal defines "Influencer" as "any person with an important amount of followers that has a verified account, and who takes advantage of their exposure, image and persuasion ability to promote a product or service, with the purpose of affecting the purchasing decision of their followers, resulting in an economic benefit for themselves."

Agreements

Risk of false self-employment

If you are looking to collaborate with independent workers, it is essential to treat them as such. Influencers working independently should be treated differently from employees. It is crucial to provide them with creative and personal freedom, allowing them, for example, to choose and determine their own activities and working hours. To prevent a relationship that could be seen as an employment relationship, it is imperative to draft a clear agreement between the two parties. If the relationship is too close to an employment relationship, it may be viewed as false self-employment. This may come with legal implications for the brand. Without an unambiguous agreement, a clear distinction is not always easy; both influencers and those who use them are often unaware of how the relationship can be viewed by the authorities.

As a rule of thumb, the more instructions you give regarding the services to be performed and the more the person is bound to your organization, the more likely it is that an employment relationship exists. To ensure that your relationship with the influencer is as unambiguous as possible, it is important to make sure that the agreement that is established is fair and offers them the autonomy to choose their own activities and working hours. Also, the relationship should also be independent in facts not only on paper. This should allow for a successful collaboration. In the case of false self-employment, the brand or agency may be responsible for paying employer fees and social costs for the influencer.

An Agreement can take many forms and does not necessarily have to be in writing. However, it’s usually recommended to sign a written Agreement with the digital creator before they start to work on a project. We recommend having a legal professional review the agreement before it's signed, to ensure that it covers all the necessary legal aspects relevant to the relationship at hand. It may be relevant to define the following points in the agreement:

1. Define Compensation Structure and Amount

Begin by specifying the type and amount of compensation the influencer will receive for their services. This can be a flat fee, commission-based, or a combination of both. Be transparent about the compensation structure and ensure that the influencer understands whether they are considered an employee or an independent contractor, as this has tax implications.

2. Outline Payment Schedule and Currency

Establish a clear payment schedule that details whether the influencer will receive a one-time payment or multiple installments. Also, specify the currency in which payments will be made, and discuss potential fluctuations in exchange rates to avoid confusion or disagreements.

3. Specify Payment Terms for Content Creation and Sharing

One important consideration is whether payment should only be made upon delivery of the post or if there should be two separate fees, one for creating the content and another for sharing it upon approval by the Brand. Clearly state these terms in your agreement to ensure both parties understand when and how payments will be made for each aspect of the influencer's work.

4. Detail Payment Methods and Third-Party Involvement

Outline the method of payment, whether it's PayPal, wire transfer, or through a third party. If you're using a third-party service provider, such as Gigapay, to handle payouts and reporting, include this information in the agreement. This helps set expectations and ensures the influencer knows who will send the payment and when to expect it.

Want to know more about influencer partnership agreements? Use this guide to ensure your agreements cover all essential aspects and foster long-lasting, mutually beneficial relationships with your influencers.